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The Edge Market – LKL International Inks Two Distribution Agreements For Taiwanese Medical Devices

KUALA LUMPUR (April 12): LKL International Bhd has clinched two agreements to vdistribute medical appliances from a Taiwan-based company in Malaysia.

According to two bourse filings, the group said its wholly-owned subsidiary Medik Gen Sdn Bhd (MGen) had entered into the agreements today with Taiwan-based Qisda Corporation’s BenQ Asia Pacific Corp (BenQ), and BenQ’s unit Lily Medical Corp (Lily).

Both distribution agreements are to end on March 31, 2021.

Under the agreements, MGen will distribute BenQ’s medical display devices, related spare parts and software, and Lily’s disposable medical devices and related spare parts. Both Lily and BenQ have allowed MGen to use their trademarks and logos to promote and sell these products.

LKL said the agreements complement its existing business in the healthcare sector.

“With the award of the distributorship, the group will not only be able to broaden its products offering to its customers via the distribution of the products but also to expand its customer base in [Malaysia]. The distributorship is expected to contribute positively to the future financial performance of the group,” it said.

The two distributor agreements are not expected to have a financial impact on the group’s earnings, net assets, gearing levels or substantial shareholder’s shareholdings for the financial year ending April 30, 2019 (FY19)

Meanwhile, in another filing, LKL said MGen had entered into a shareholders’ agreement with Agrow Corporation Sdn Bhd on April 10 to set up a joint venture company to promote, market, distribute and sell selected branded medical devices within Malaysia.

The proposed name of the JVCo is LKL Agrow Healthtech Sdn Bhd and it is expected to commence operations by three months from the date of the agreement.

The initial capital of the company will be RM500,000, comprising 500,000 ordinary shares, with both party subscribing to half of those shares each.

MGen’s subscription of the shares will be funded internally.

The counter closed unchanged at 12 sen — with 110,000 shares changing hands — giving the group a market capitalisation of RM51.46 million.

April 12, 2019

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